Equity release funds Bank of Mum and Dad

Equity release funds Bank of Mum and Dad

Looking for options to help your children make that first step onto the property ladder? Explore equity release plans to borrow money on your own property to provide a gifted deposit to your loved ones.

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Use A Lifetime Mortgage Equity Release Plan To Help Your Family Buy A Home - Make No Repayments During Your Life And Remain In Your Property

Video transcript

New research has shown that although first time buyers are only a couple of years older now than they were 30 years ago, many more are utilising equity release funds from their parents to pay their deposit.

HSBC`s new Property Path report notes that the average age that people moved into their first property in the 80s was 27. That`s not changed much today, with the average age being 29 – the real difference is in the deposit: 30 years ago, it was around £1,000, while today it`s closer to £30,000.

While inflation may have boosted the difference between those two numbers, as a percentage of the borrower`s annual income, the deposit made up just 12 per cent of the 80s borrower`s annual income, compared to 82 per cent for the modern buyer.

With the parents of first time buyers now being in their mid-50s and 60s on average, they are more likely to have paid off a fair proportion of their mortgage and be in a position to utilise equity release in order to aid their offspring in being able to set foot on the property ladder.

An example of an equity release scheme is a lifetime mortgage which allows people who are approaching retirement to unlock the money that`s built up in their home without needing to leave the property they`ve lived in for much of their lives.

As well as helping to pay for their children to set off on their own housing adventure, the money can also be utilised to pay for a treat for yourself, supplement your income or allow you to afford a better standard of care for your loved ones.

Discover more about what equity release schemes we have access to by visiting us at firstchoicefinance.co.uk or by calling us on 0333 003 1505 on your mobile or 0800 298 3000 from a landline.

Release Equity From Your House

First Choice are specialists in advising you on safe, secure borrowing from your property via equity release. After years of working hard, do you find that your pension or endowment is failing to deliver the income required for you to enjoy a comfortable retirement? At First Choice Finance, we can help you to unlock the equity in your home - tax free - without having to move out! Request your no-obligation, Equity Release Quote by calling for free on 0800 298 3000.

Equity release schemes are exclusively available for the over 55`s and can be taken out even if you are in your late eighties. If you are a homeowner and your property is worth more than £60,000 then you could be eligible for one of one our Equity Release products from one of our equity release plan providers.

First Choice Lenders equity release plans can help you to: Fund a gifted deposit for your children to buy a house
Fund your home improvements or an extension
Clear your mortgage and make no further payments in your lifetime
Improve your lifestyle in retirement
Help you with inheritance tax planning
Pay off any outstanding debts

What is Equity Release?

Equity Release is a method for releasing some of the money tied up in your home, without the need to move. Equity Release is for people aged 55 years or over, although remortgaging can be used to release equity for home owners under the age of 55

There are two types of equity release plans to choose from, Lifetime Mortgages and Home Reversion Plans. First Choice Finance only offers advice on Lifetime Mortgage solutions.

A new alternative to releasing equity is to take out a Retirement Interest Only Mortgage. These are like an interest only mortgage but enable you to continue them to a much later age.

Equity Release Do`s & Don`ts

The decision to release equity from your home is a significant one. Like all borrowing decisions it must not be taken lightly. Assess all your other options first as this may either eliminate your need to borrow or reduce your actual borrowing requirements. When you enquire online to First Choice Finance you will get qualified advice on the most suitable option from our lender panel.

Homeowner Secured Loans
Rates From 7.1% APRC Representative Example £30,000 over 72 months @ £679.90 repayments. Total payable of £49,949. 20.1% APRC including £2,975 intermediary fee and a £995 lender fee. Loans secured on property. First Choice are tied to certain loan providers.

Mortgages & Remortgages
4.5% APRC
Representative Example: Borrow £80,000 over 25 years At 4.6% Variable, £461.95 for 300 months.
Total Payable £138,585. Total Cost Of Credit £58,585 (incl £1360 fee).

Unsecured Personal Loans
First Choice are tied to certain unsecured lenders.

Security is required on immovable property.

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of The Old Courtyard, 103 Buxton Road, High Lane, Stockport, Cheshire. SK6 8DX. Copyright protected.